Best flex space strategies for higher worker attendance and property values

Despite the ongoing evolution of hybrid work, there are clear signs that the return to office is continuing to improve across Australian CBDs in 2024.   

CBRE’s latest Australian CBD Return to Office Indicator report highlights this trend alongside another suggestion that employees are receiving subtle hints to attend the office more often. 

This ultimately raises one of the more polarising questions: What’s in it for the employee? 

One sector that’s pioneering ways to answer this is flex workspace. Some of the world’s leading flex spaces are now trialing solutions to turn the standard eight-hour office day into a 16-hour business model, and we wanted to know how. 

Helping to answer this crucial question around elevated guest experiences and future-proofing office buildings is Jaelle Ang, the CEO and founder of The Great Room by Industrious, a flexible workspace provider serving a roster of Fortune 1000 enterprises, startups, industry thought leaders, and change-makers. Reinforcing these insights from the field is CBRE's Executive Managing Director of Property Management in the Pacific, Nat Slessor. 

Differences between flex space, coworking space and third space 

Before diving into the strategies, it’s first important to be aware of the differences between the workspaces that are often considered the same.  

“In the industry, coworking and flex space are used interchangeably,” says Ang.   

“There are subtle distinctions though. Usually when people talk about coworking, it connotes community, networking and shared resources, making it very easy to find like-minded people in a supportive environment.  

“Flex space prioritises flexibility, scalability, catering to a bit of a larger enterprise with fluctuating space requirements.  

“But my thinking is that all of this is just going to be called working, because that's simply how people want to work. They want the people, they want the freedom to choose how, when, where, and who to work with.” 

A third space is more distinguishable, adds Slessor.  

"It's the spaces in between traditional office space. For coworking spaces, it could be the spaces in between retail and office spaces. Think of your office lobby or all the spaces that are not quite an office, but you might work in them - a lounge space, some meeting rooms that you may hire or use.  

"There's immense potential in third space. It's the fabric of our cities in many cases, and the fabric of our office buildings. So, it’s slightly different to flex space, which might be a bit more of a leased or procured space, third space is that bit in between.” 

How the experts are elevating workplace experience  

Off the back of defining the third space is understanding its positive effects.    

“It could be an amenity or a lounge base. A space where people work, play, connect, collaborate, eat, drink or socialise. It’s become a very important part of the work-life journey, because it isn't really about being behind the computer anymore,” says Ang.  

“It's knowing that here's the reason why you're going into the office. Compared to the other landlords and cities, Australian landlords are very intentional in creating beautiful third spaces and working with different partners to be able to achieve that to future-proof their buildings.” 

Ang also emphasises the importance of creating spaces designed for those moments of spontaneous human interaction – a networking opportunity that isn’t possible when working from home. 

“The value that casual bump-in conversations generate is real,” she says.  

“The water cooler chat and all those little things add up, and sometimes they create the greatest value. The value isn't when you're behind a computer. That's the work we all need to do. But real high value work, it's when you're out and about.” 

Another strategy used for elevating the workplace experience is placemaking.  

Placemaking occurs when buildings are transformed into vibrant urban spaces that offer wellbeing, pleasure, and inspiration. Its success can be measured by improved lives, greater happiness, and when done successfully, an uplift in property values. 

How can this benefit today’s office buildings? 

“I think it's going to be about that wider range of audience and ultimately the wider range of how we might attract community to our spaces” says Slessor.  

“We've had graffiti art exhibitions and performance art. The minute you come into the office, what we want this to be is a realisation of why you would go anywhere else?  

“There is that element of surprise and delight as well as the understanding that this is just supporting my life and my work that I'm doing today. 

“We can choose to work at home, learn at home and shop at home. Why don't we do everything at home?  

“The reason behind that answer to many people is because something unexpected and delightful might happen when we go into the office. I have greater value when I get there, it's a change of scene and I learn something. We're really trying to tap into that well.” 

Ang agrees and says that her experience across Asia has allowed her to see what office workers want before providing it to them.    

“People aren't going to the malls as much, so what do we do? We bring the mall to them. We bring the brands to them. It's all about the brand immersive experience. We can't quite be operating 24-hours like a hotel, but if we can turn the eight-hour office day into a 16-hour business model, from your first cup of cappuccino to your last nightcap, wouldn't that be interesting?” 

Listen to the full podcast conversation on how flex working is helping to future proof office buildings.